Market opened flattish again, while slow meandering trading continues ahead of the Fed event Friday in Jackson Hole. There is very little news flow going on with much of the world still in vacation mode. Oil has been the only big mover, which has seen active moves both up and down in the high $40’s. The mild Market this week has been a polar opposite from what happened a year ago today, with the Flash Crash, that sent the DOW plummeting 1,000 points at the open. That was a brutal day, which led to the massive correction which ended in February. Global Markets were mixed overnight. There was an earthquake in Italy which killed nearly 40 people and caused significant damage. The Dollar is catching a bid while interest rates are barely moving. The yield curve has flattened the most since 2007, with the spread between 2-Year and 10-Year Treasuries around 75 bps.
On the campaign trail, both Trump and Hillary seem to be competing for who can get the highest unfavorable vote. Negative press has been trailing both candidates. The email and Clinton Foundation issues are not only going away; they’re getting worse. Polls have been tightening as Trump’s new campaign manager has him toning things down a bit. He got a bump when he went down to Louisiana to provide aid and survey the situation. That triggered President Obama to follow suit, which created some controversy. This whole election has been all about controversy. The first debate is just a month away.
Have a great day,
Mike
